49th GST Council Meeting: Union Finance Minister Nirmala Sitharaman chaired the 49th meeting of the Goods and Services Tax (GST) Council, in Vigyan Bhawan, New Delhi. The Union Finance Minister, Union Minister of State for Finance Pankaj Chaudhary, besides the finance ministers of states and Union Territories (with legislature) and senior officers from the Union government and states, attended the meeting.
Highlights of Key Decision taken in 49th GST Council meeting:
1. Rationalization of GST late Fee
The GST late fee for GST Annual is applicable from FY 2022-2023, subject to 0.02% of turnover, as follows :
|Aggregate Turnover||Late Fee|
|Upto Rs 5 crore||Rs 25 per day|
|Above Rs 5 crore upto Rs 20 crore||Rs 50 per day|
2. Reduction in GST Rate
|Raab, a liquid jaggery||18%||0% – if loose|
5% – Otherwise
3. Constitution of Tribunals under GST
The Group of Ministers’ (GoM) recommendations for the establishment of a GST appellate tribunal have been accepted. As many as 15 states had reportedly opposed the recommendations made by the Group of Ministers (GoM) for the tribunal.
4. Reverse Charge Mechanism on Court Fee
GST would be applicable to court fee by the Courts and Tribunals under RCM
5. GST compensation dues, worth Rs 16,982 crore, will be cleared
GST compensation cess which amounts to a total of Rs 16,982 crores for June will be cleared. “Although this amount is not really available in the compensation fund as of today, we have decided to release this amount from our own resources and the same amount will be recouped from the future compensation cess collection,” Sitharaman said.
6. Exemption provided
No GST will be applicable on coal rejects, and services of the national testing agency, including entrance examinations, have also been exempted.
7. Special Composition Scheme
Two Reports of GoM Accepted including Special Composition Scheme for certain Industries and GST Tribunal.
8. GST Rate on online gaming could not be decided today
9. GST Council decides that GST will not be levied based on factory’s manufacturing capacity.
10. GST Amnesty Scheme coming soon
GST Amnesty Scheme for following returns will be announced soon:
- GSTR-4 : GST Return of Composition scheme
- GSTR-9 : GST Annual Return
- GSTR-10 : Final Return filed by GST Taxpayers after cancellation of GST Registration